Americans are about to see the largest increase in their energy bills in over 10 years.
A new report from the National Energy Assistance Directors Association (NEADA) projects a 17.2% jump in average home heating costs this winter compared to last year, and a 42% increase in electricity costs compared to the winter just before the pandemic.
The rise in energy costs is a result of high summer temperatures that drove up natural gas prices due to high demand and production still shaken by the Covid-19 pandemic. This imbalance between supply and demand has also been exacerbated by the retirement of coal and nuclear plants in favor of electric generators.
Today, the price of natural gas is at levels not seen in over a decade. NEADA estimates that 91% of Americans’ heating and cooling costs are tied to the price of natural gas, either directly or as the primary energy source used to generate electricity.
Some energy supply companies are already notifying customers to prepare for higher bills. On September 9, New York utility giant Con Edison predicted that a typical customer’s electric bill would rise 22% to $116 per month this winter, while the average residential natural gas heating consumer will see a 32% jump to $460 per month.